This market is overbought, and there are only few smart investor knew about secret "Fine Tuning Operation" by ECB. The unexpected rally on Dec 20th, Dec 27th, Jan 3rd, or Jan 10th is not caused by any economic data but ECB fine tuning operation where ECB is printing free money for the market. Today rally wasn't unexpected as i mentioned in my yesterday article that the stock will be opening higher.

Smart big investor kept the market low or sold off 1 day before this date to get shorts in the market.

and then check ad hoc communication for the next ECB fine operation date and take advantage of the rally.

After the operation, next day Eur/Usd sold off and hit new lows. EUR/USD hit 1.2800 and as of now Eur/USD is at 1.27400 Eur/Usd is likely to fall below 1.27 soon.

NFIB small business optimism index for Dec 2011

Click to enlarge

NFIB Small Business Optimism Index came at 93.8 which is considered second highest level of recovery. Just read the data correctly, Plan to increase employment is down 1% from last month, plan to increase inventory is 0%, Current job opening is down 1%, earning trend is up 6% form last month, yet its down 22%. Any recovery is impossible without adding new job and new job can only be added if there is demand. Right now demand is low, so there is no job added or no new opening. Once again headline number is good, but if you read between the data, optimism is on hope but not real employment.

ICSC Chain stores sales for Jan 7 week, came at -5.4% compare to prior week of 1.2% and y/y its 2.8% down from 5.3% previous year.

Stocks likely to open low are: MSFT, URBN, INTC, ORCL, JNPR, PVH

Stocks likely to open high are: IPXL, TYPE

JNPR, LULU can be shorted or buy Feb put option. AA posted loss, yet stock opened 4% up, so if possible avoid playing ahead of any earning.